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Nature and Purpose of Business

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Question

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Define economic and non-economic activities.

Solution

Economic activities :

1. These activities are based on economic motives like production of sugar, cement etc.

2. People expect profit or money income.

Non-economic activities :

1. These activities are based on social and psychological motives.

2. People do not expect profits or money income.

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Question

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Write any three features of profession.

Solution

1) Profession refers to an occupation which is concerned with rendering service.

2) It requires specialized knowledge. It requires long and intensive academic, preparation and training.

3) Profession is regulated by laws.

Question

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Explain the concept of business.

Solution

The term business is derived from the word 'busy' which means to be occupied. Thus, business means being busy.
In other words, busines refers to the activity of buying and selling products and servies with a view to earn profit.

Question

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Define the term 'industry'.

Solution

The term Industry refers to economic activities, which convert resourses into products and goods.
The process of conversion of raw material into useable goods need technical and mechanical skills.
These activities not only include producing or processing of goods but also include breeding and raising of animals.

It also refers to the group of people and companies that are related in terms of their primary business activities.

For example, cotton textile industry refers to all manufacturing units producing textile goods.

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